Things take time to turn around. Finding new management, turning around views about "a dollars work for a dollars pay", takes time. We can start by kicking out all of those do nothings in the financial industry who make millions of dollars by scamming people and over leveraging companies, to the point that they have to fold. I would put everyone at AIG, Goldman, Morgan Stanley, and Citi Group on $25/hour, just as a starting point. And kick out their management for destroying our financial system. Just as a starting point.
Doing just fine thank you, and all systems are go. Let's just say that with strong tail winds from government fiscal and monetary policies, my upside/downside ratio is very favorable. As Zweig use to say: Don't fight the Feds. I didn't accrue my wealth by listening to fear mongers. I did it by ignoring them, and running for the hills when the fear mongers say everything is going swell (Bush, circa 2008).
if its not broke dont fix it, well its broke so lets fix it by cleaning out the dead wood and start fresh with some free thinkers who have their eye on the prize. in this country you should be paid by performance in my eyes unless you work for the state or are a teacher, police officer etc. these big wigs have no incentive to get off their ass and innovate why because they are getting paid fat wad to basically cruise. we as a country cant use that tactic anymore and the sooner we as a soceity realise this the sooner we can get back to being a productive nation.
I agree. There have been many attempts during the previous administration to make it easier for stockholders to get the fat cats out of their cushy seats. Rubin made $100 million for doing nothing except bringing down an institution. Ditto for Fuld and the rest. I hope that the new administration will make it easier for stockholders (institutions and individuals), to kick out do-nothing boards and put the breaks on compensation incentives that permit extraordinary risks (and their consequences) to be rewarded lavishly no matter what the consequences. What I would like to see is any director or executive at GM forced to put up 75% of their net worth. Now that is an incentive to succeed not fail!
This had to happen someday because every system in this world has to come to an end someday Consider banks where people deposit money and banks trades "people's money" by giving loans to "sinking and inefficient multi-billion dollars giant companies". In the end "world economy" suffers loss of $5 trillion - $10 trillion (final amount unimaginable) because of these "worthless giant companies and banks" without any "business brains". Then "worldwide central banks" invests $4 trillion - $6 trillion into "sinking world economy" and then "central banks" also become bankrupt. USA alone lost 5,33,000 jobs in November 2008, the highest monthly job loss since 1974. Think of "worldwide job-loss" Consumer spending has fallen to its maximum and less money is going to banks & less money is circulating in "world economy" because now world is poor. Also what about the $10 trillion+ (not sure of correct amount) loss because of "Mortgage & Bank crisis".
All of this has happened. Mostly due to total lack of any oversight on how banks gave away our money, using scandalous loan standards, just so they can collect the upfront fees. And then scammed the world, by collateralizing this worthless junk, and selling them as AAA to unsuspecting investors. But this is done. Now the question is how to turn it around. The fastest and best way is to put people back to work. Given the lack of money velocity, the government can spend hundreds of billions without fear of inflation. Especially, if every country in the world is doing the same thing. As long as the money is spent on needed capital improvements (and our country sorely needs these improvements), then the payback should be generous. The question is how much more damage Bush and the Republicans can do, to undermine Obama during the next 40 days. If it can be contained (Bair looks at Paulsen with such obvious distain), then I think our country has a very good chance. Most (not all) would like to earn a honest dollar for an honest day's work.
And here's a fine example of what happens when Uncle Sam gets a say in your business. A company has to shut down and does not have money to give it's employees the legally required 60 day notice. So the employees seize the plant and demand money from. . . well not from the company since they are broke. Nope, they're after Bank of America, because BAC got a bailout. http://news.yahoo.com/s/nm/20081207/us_nm/us_usa_economy_factory
I'm guessing that richrf would have us (i.e., the taxpayers) support the horse buggy manufacturers if they were still around complaining that these newfangled automobiles were stealing their market share. Markets change, and if manufacturers can't keep up--for any reason--then the laggards need to go. Maybe these failing automakers would thrive in another industry. But they sure don't succeed in making cars, and they haven't for decades! Toyota, Honda, et al. are nearly as American as GM and Ford. Toyotas are made here; they're built by Americans; they're designed in large part by Americans; the plants are managed by Americans; and the company's shares are owned in large part by American investors. Just because the headquarters happens to be in Japan doesn't make this a "foreign operation." If you want to continue to support failing American businesses at the expense of American productivity and profitability, then you'll wake up one day to an America that can no longer compete--in anything! It's far better to focus on the areas in which we seriously kick ass.
Profits of Honda and Toyota go to Japan. It enriches Japanese society just like oil profits go to the Middle East. The way to turn around the U.S. is to start producing more than we are spending. As for horse and buggy, that is the "free market" solution, which gave us whopping gas guzzlers which enriched some fat cats here and in the Middle East for a short period of time. It is now the time to start thinking about America first and Japan, Middle East second (the Middle East being one of the favorite buddies of the Bush clan). Build clean, efficient, cars here in the U.S., and keep circulating dollars here in the U.S. And while we are at it, get rid of all the scammers that sold our country down the drain (this includes the dudes over at Fox network, which is owned by foreigners for the sake of foreigners).